[systemvoltage]

This is wrong, misguided and naive.

International trade when done with effective reciprocity and managing the trade deficit, can lead to competition on a larger scale, better outcome for consumers and specialization in particular aspect of manufacturing or services.

Even domestically, specialization is how human species became to me. If humans continued to be inwards looking and never engaged in barter-trade or any kind of bilateral exchange either with monetary instrument or goods/services; we would still be caves.

National to international trade is just one more step in the expansion of trade that we all benefit from. We have proof that it works when all parties are rational and cooperative. If we found aliens on another planet, it would only make sense to trade with them (just increasing the abstraction layer from national to international to interplanetary).

[rbecker]

> International trade when done with effective reciprocity and managing the trade deficit

This is exactly what protectionism can help achieve. Without it, you get banana republics, wholly owned by foreign multinationals.

It's telling you ignore the parent posts Asian tiger economies as examples of successful protectionism, and instead address the ridiculous strawman of "never engaged in barter-trade or any kind of bilateral exchange either with monetary instrument or goods/services"

[Mekantis]

> This is wrong, misguided and naive.

I'd appreciate it if you didn't jump straight to insults.

> International trade when done with effective reciprocity and managing the trade deficit, can lead to competition on a larger scale, better outcome for consumers and specialization in particular aspect of manufacturing or services.

I didn't say international trade should be stopped entirely. "Free trade" isn't "all trade". I'd appreciate it if you didn't strawman me. A part of the myth is the idea that free trade means perfect competition. No, it means a massive existing company can easily buy up local competitors and ensure that competition ceases entirely.

> Even domestically, specialization is how human species became to me. If humans continued to be inwards looking and never engaged in barter-trade or any kind of bilateral exchange either with monetary instrument or goods/services; we would still be caves.

This ignores the many cases where countries have protected local industries despite these industries existing elsewhere producing far better products and being far more competitive, and been wildly successful because of it. And again, I never said "no trade ever at all allowed because all trade is bad".

> National to international trade is just one more step in the expansion of trade that we all benefit from. We have proof that it works when all parties are rational and cooperative. If we found aliens on another planet, it would only make sense to trade with them (just increasing the abstraction layer from national to international to interplanetary).

I never said otherwise. Trade is fine. Foreign companies crowding out local industries to the point that local jobs are primarily low quality and low paying is not (see the number of countries that are relegated to production of fabrics and other low-cost goods).

[a9h74j]

> aliens on another planet

Related thought experiment: What if the aliens were 1000 years ahead in patenting everything (in a way which didn't expire), then forced their IP regime on Earth, extracting IP rent for everything, since it would _only_ make sense to trade with them?

[systemvoltage]

You know the answer. Mutual trade makes sense when trade deficit is managed, there is cooperation and symmetry. We don't need to go to aliens for that, right now we have China that's creating asymmetry in the trade and it doesn't play by the fair rules. For example, US allowing TikTok and WeChat but China banning Facebook/IG and Google.

[imtringued]

This is such an amazingly good question because it directly relates to real life. Of course you would trade with them to get 1000 years ahead and then once you are at the same level as them you would betray them and completely ignore their "stupid" IP laws. This is basically what China has been doing for decades now.

[mahkeiro]

It won’t prevent new product to be patented, so innovate...

[pcurve]

"International trade when done with effective reciprocity and managing the trade deficit, can lead to competition on a larger scale, better outcome for consumers and specialization in particular aspect of manufacturing or services."

you need a properly functioning local government, which is pretty rare in developing countries.

[missedthecue]

But it's not an indictment of free trade